Critics of government regulation argue that government interference in the marketplace stifles the "animal spirits" of entrepreneurship.
Answer the following statement true (T) or false (F)
True
Regulation and intervention by the government reduce incentives to produce.
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According to the Taylor rule, the Federal Reserve sets interest rates in response to:
A. the inflation rate and the current output gap. B. the inflation rate and the unemployment rate. C. the current output gap and the target money supply growth. D. the S&P 500 index and the inflation rate.
Deadweight loss and market failure are created when a market produces
A) either more or less than the efficient quantity. B) more than the efficient quantity but not when less than the efficient quantity is produced. C) less than the efficient quantity but not when more than the efficient quantity is produced. D) the efficient quantity. E) None of the above answers is correct because deadweight loss has nothing to do with the efficient quantity.
The most obvious measure of low levels of economic development is low _____.
Fill in the blank(s) with the appropriate word(s).
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. If Jerry decides to specialize in building fences, what are the limits to his terms of trade?
A. Jerry will accept no less than 7 fences for each dishes. B. Jerry will accept no less than 7 dishes for each fence. C. Jerry will accept no less than 2 dishes for each fence. D. Jerry will accept no less than 2 fences for each dishes.